New South Wales (NSW) in Australia has begun its largest renewable energy tender to date, seeking proposals to deliver 2.5GW of new infrastructure under Tender 8.
AusEnergy Service (ASL), the Consumer Trustee, will manage Tender 8 under the NSW Electricity Infrastructure Roadmap.
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The new capacity targeted for this round could be sufficient to power approximately one-third of homes in the state. It will also facilitate up to 90% progress towards NSW’s 2030 target of 12GW of renewable generation.
Simultaneously, a second process, Tender 9, has been announced with an indicative target of up to 12GW-hours of long-duration storage (LDS) capacity.
With the new tenders, NSW aims to exceed its previous LDS targets set for 2030 and 2034. The state also intends to increase the pipeline of projects in response to evolving energy market requirements and anticipated retirements of coal-fired power stations.
The generation tenders were paused while state projects accessed the Australian Government’s Capacity Investment Scheme (CIS). According to ASL, Tender 8 signals a renewed focus on NSW’s own Roadmap as federal government allocation under the CIS nears completion.
The latest opportunity also introduces a new Hybrid Generation Long-Term Energy Service Agreement (LTESA), the first of its kind in NSW. It enables project proponents to combine renewable generation such as solar or wind with battery storage.
This hybrid approach is designed to support new projects with both generation and storage at a single site. This allows more flexible dispatch of electricity into the grid, particularly during periods of high demand or low renewable output.
Projects bidding for generation support through ASL must reach a final investment decision and take into account any necessary network upgrades or risks associated with integrating new capacity.
Meanwhile, eligible LDS technologies include large-scale batteries and pumped hydro capable of dispatching energy for at least eight hours. The LDS agreement provides capped annuity payments to aid business cases for new storage facilities.
NSW Climate Change and Energy Minister Penny Sharpe said: “Tender 8 alone will deliver enough energy to power about one-third of homes in NSW, marking a major step forward in our plan to future‑proof NSW’s electricity system.
“Tender 9 ensures we can store renewable energy, so it can be released on demand when needed, making our grid more stable and reliable.
“This is about keeping the lights on when ageing coal-fired power stations retire and doing it in a way that puts downward pressure on electricity bills for NSW families.”
Both tenders officially opened on 20 May. Proponents must submit bids within around seven weeks. Outcomes are expected to be determined by late 2026.
When complete, the projects from Tenders 8 and 9 are intended to deliver enough generation and storage to supply 1.26 million NSW homes. This will contribute significantly to system reliability and the broader shift towards renewable electricity sources.
